Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal First Quarter 2018
GAAP Net revenue grew 34% to
GAAP Net income increased to
Net Sales grew 28% to
Fiscal First Quarter 2018 GAAP Financial Highlights
Net revenue grew 34% to
Digitally-delivered net revenue grew 56% to
Net income increased to
As of
The following data, together with a management reporting tax rate of 22%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Three Months Ended June 30, 2017 | |||||||||||||||||||||
Financial Data | |||||||||||||||||||||
$ in thousands |
Statement of Operations |
Change in deferred net revenue and related cost of goods sold |
Stock-based compensation |
Non-cash amounts related to convertible notes |
Acquisition related expenses |
Amortization of intangible assets |
Business reorganization excluding stock-based compensation |
||||||||||||||
Net revenue | $ | 418,216 | (69,911 | ) | |||||||||||||||||
Cost of goods sold | 194,569 | (40,291 | ) | (3,481 | ) | (4,242 | ) | ||||||||||||||
Gross profit | 223,647 | (29,620 | ) | 3,481 | 4,242 | ||||||||||||||||
Total operating expenses | 173,428 | (20,590 | ) (1) | (18 | ) | (3,951 | ) | (8,178 | ) | ||||||||||||
Income from operations | 50,219 | (29,620 | ) | 24,071 | 18 | 8,193 | 8,178 | ||||||||||||||
Interest and other, net | (2,808 | ) | 4,134 | ||||||||||||||||||
Income before income taxes | 47,411 | (29,620 | ) | 24,071 | 4,134 | 18 | 8,193 | 8,178 |
1) Includes $2,421 of stock-based compensation related to business reorganization. |
In order to calculate net income per diluted share for management
reporting purposes, the Company uses its fully diluted share count of
118.8 million and adds back to net income the interest expense, net of
tax, on the convertible notes of
Operational Metric – Net Sales
Starting with fiscal first quarter 2018, Take-Two has replaced Bookings with Net Sales as an operational metric. The Company has made this change in order to increase transparency and to be consistent with operational metrics provided by its peers. Net Sales is defined as the net amount of products and services sold digitally or sold-in physically during the period. Unlike Bookings, Net Sales includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
During fiscal first quarter 2018, total Net Sales grew 28% to
Management Comments
“Fiscal 2018 is off to an excellent start, with our business’s positive
momentum continuing to exceed our expectations in the first quarter,”
said Strauss Zelnick, Chairman and CEO of Take-Two. “We delivered growth
in both Net Sales and net revenue, as well as margin expansion. Our
results were led by the ongoing extraordinary performance of Grand
Theft Auto V and Grand Theft Auto Online, strong demand for
“As a result of our stronger-than-expected first quarter operating results and improved outlook for the remainder of the year, we are increasing our fiscal 2018 outlook for Net Sales and net cash provided by operating activities. Looking ahead, we expect fiscal 2019 to be a record year for Net Sales and net cash provided by operating activities led by the launches of Rockstar Games’ Red Dead Redemption 2 and a highly anticipated new title from one of 2K’s biggest franchises. We have a robust development pipeline and are better positioned than ever for long-term growth and margin expansion.”
Business and Product Highlights
Since
Take-Two:
-
Further diversified its industry-leading portfolio of owned
intellectual property through the acquisition of Kerbal Space
Program, the critically acclaimed physics-based space simulation
game. Created by independent developer Squad, Kerbal Space Program
was originally released on PC in
April 2015 * and has sold over two million units to date. The title has been widely popular with the media and consumers alike, earning a Metacritic rating of 88** and a Steam user score of 97%***. The Kerbal Space Program: Making History Expansion is planned to launch for PC later this calendar year.
*Game became available through Steam Early Access in March 2013, and launched in April 2015. |
**Metacritic score for PC as of July 31, 2017. |
***Steam user score as of July 31, 2017. |
Rockstar Games:
-
Released new free content updates for Grand Theft Auto Online,
including:
- Gunrunning, a massive update offering new opportunities in illegal weapons trafficking gameplay and featuring tactical, full-service Mobile Operation Centers complete with new weapon upgrades and deep customization, all new Weaponized Vehicles and much more.
-
Dawn Raid , a two-team race under the cover of darkness to track down highly coveted contraband involving parachutes, Night and Thermal Vision Goggles and the Trackify app to locate the correct package. - Overtime Rumble, a new team-based fan favorite mode that pits up to 10 players in a vehicular remix of Darts as players try to land the Ruiner 2000 on platforms of various sizes.
- Power Mad, a point-based battle where players on each team fight for the right to control the minigun-toting Juggernaut.
- Announced that Red Dead Redemption 2® is planned for release worldwide in spring 2018 (fiscal year 2019) for PlayStation®4 and Xbox One.
2K:
-
Released two downloadable add-on packs for Mafia III – Stones
Unturned and Sign of the Times – which are available for
individual purchase or as part of the title’s
Season Pass . -
Announced
Seth Rollins as the cover Superstar for WWE 2K18, the next release from its flagship WWE video game franchise, which will launch onOctober 17, 2017 for PlayStation 4 and Xbox One. Players who purchase the WWE 2K18 Deluxe Edition or WWE 2K18 Collector’s Edition from participating retailers will receive Early Access to their game copies and in-game bonuses beginning four days early on October 13, 2017. In addition, WWE 2K18 will be released for Nintendo Switch™ during fall 2017, marking the first time in five years that a WWE game has been available on aNintendo platform. The title will be supported with a series of post-launch content, including aSeason Pass . -
Announced that Cleveland Cavaliers point guard, Kyrie Irving, will be
the cover athlete of
NBA 2K18, the next iteration of its top-rated and top-selling NBA video game simulation series, which will launch onSeptember 19, 2017 for PlayStation 4, PlayStation 3, Xbox One, Xbox 360, Nintendo Switch, and Windows PC platforms. In addition, Hall of FamerShaquille O’Neal will be on the cover of theNBA 2K18 Legend Edition. This special edition will place a spotlight on “The Big Aristotle” with special Shaq-themed memorabilia and content, extending his legacy as the most dominant center inNBA history.NBA 2K18 will also debut the series’ first-ever Canadian cover, featuring Toronto Raptors’ shooting guard DeMar DeRozan.
- Announced that XCOM® 2: War of the Chosen, the expansion pack for the 2016 award-winning strategy title from Firaxis Games, will be available for Windows PC, PlayStation 4 and Xbox One on August 29, 2017.
Financial Outlook for Fiscal 2018
Take-Two is providing its initial financial outlook for its fiscal
second quarter ending
Second Quarter Ending
-
GAAP net revenue is expected to range from
$400 to $450 million -
GAAP net income is expected to range from
$17 to $27 million -
GAAP diluted net income per share is expected to range from
$0.15 to$0.25 - Share count used to calculate GAAP diluted net income per share is expected to be 109.9 million (1)
-
Net Sales (operational metric) are expected to range from
$465 to $515 million
The Company is also providing selected data and its management reporting tax rate of 22% that are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Three Months Ending September 30, 2017 | ||||||||||
Financial Data | ||||||||||
$ in millions |
GAAP outlook (2) |
Change in deferred net revenue and related cost of goods sold |
Stock-based compensation (3) |
Non-cash amounts related to convertible notes |
Amortization of intangible assets |
|||||
Net revenue | $400 to $450 | $65 | ||||||||
Cost of goods sold | $194 to $222 | $22 | ($8) | ($4) | ||||||
Operating Expenses | $185 to $195 | ($18) | ($4) | |||||||
Interest and other, net | $2 | ($3) | ||||||||
Income (loss) before income taxes | $19 to $31 | $43 | $26 | $3 | $8 | |||||
Fiscal Year Ending
As a result of its better-than-expected fiscal first quarter 2018 operating performance and improved outlook for the remainder of the fiscal year, Take-Two is increasing its fiscal year 2018 outlook for Net Sales and net cash provided by operating activities. In addition, due to the continued success of Grand Theft Auto Online and other factors, the Company has determined that it is necessary to extend the life of Grand Theft Auto V and Grand Theft Auto Online for purposes of calculating deferrals. As a result, and also due to higher expected internal royalties driven by the strong performance of Grand Theft Auto V and Grand Theft Auto Online, the Company is reducing its outlook for GAAP net revenue and GAAP net income.
-
GAAP net revenue is expected to range from
$1.62 to $1.72 billion -
GAAP net income is expected to range from
$112 to $140 million -
GAAP diluted net income per share is expected to range from
$1.00 to$1.25 - Share count used to calculate GAAP diluted net income per share is expected to be 111.8 million (4)
-
Net cash provided by operating activities is expected to be
approximately
$200 million -
Capital expenditures are expected to be approximately
$60 million -
Net Sales (operational metric) are expected to range from
$1.65 to$1.75 billion
The Company is also providing selected data and its management reporting tax rate of 22% that are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Twelve Months Ending March 31, 2018 | |||||||||||||||||||||
Financial Data | |||||||||||||||||||||
$ in millions |
GAAP outlook (2) |
Change in deferred net revenue and related cost of goods sold |
Stock-based compensation (3) |
Non-cash amounts related to convertible notes |
Amortization of intangible assets |
Business reorganization excluding stock-based compensation |
|||||||||||||||
Net revenue | $1,620 to $1,720 | $30 | |||||||||||||||||||
Cost of goods sold | $732 to $781 | ($13 | ) | ($21 | ) | ($18 | ) | ||||||||||||||
Operating Expenses | $770 to $790 |
($74 |
) (5) |
($16 | ) | ($8 | ) | ||||||||||||||
Interest and other, net | $9 | ($14 | ) | ||||||||||||||||||
Income (loss) before income taxes | $109 to $141 | $43 | $95 | $14 | $34 | $8 | |||||||||||||||
1) | For the fiscal second quarter ending September 30, 2017, the Company’s fully diluted share count used for management reporting purposes is expected to be 120.3 million, which includes 109.0 million basic shares, 0.9 million participating shares and 10.4 million shares representing the potential dilution from convertible notes. The interest expense, net of tax, on the convertible notes, which is added back to net income to calculate diluted net income per share for management reporting purposes is $0.4 million. Take-Two’s GAAP net income per diluted share outlook is calculated using a diluted share count of 109.9 million (basic shares plus participating shares), because using the “if-converted” method and the Company’s fully diluted share count of 120.3 million would have been anti-dilutive. | |||
2) | The individual components of the financial outlook may not foot to the totals as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously. | |||
3) | The Company's stock-based compensation expense for the periods above includes the cost of approximately 0.6 million restricted stock units previously granted to ZelnickMedia that are subject to variable accounting. Actual expense to be recorded in connection with these shares is dependent upon several factors, including future changes in Take-Two's stock price. | |||
4) | For the fiscal year ending March 31, 2018, the Company’s fully diluted share count used for management reporting purposes is expected to be 121.9 million, which includes 110.9 million basic shares, 0.8 million participating shares and 10.2 million shares representing the potential dilution from convertible notes. The interest expense, net of tax, on the convertible notes, which is added back to net income to calculate diluted net income per share for management reporting purposes is $1.8 million. Take-Two’s GAAP net income per diluted share outlook is calculated using a diluted share count of 111.8 million (basic shares plus participating shares), because using the “if-converted” method and the Company’s fully diluted share count of 121.9 million would have been anti-dilutive. | |||
5) | Includes $2.4 million of stock-based compensation related to business reorganization. | |||
Key assumptions and dependencies underlying the Company’s financial outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of the Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these new-generation systems while continuing to leverage opportunities on the Xbox 360, PlayStation 3 and PC; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following titles were released since
Label |
Title |
Platforms |
Release Date |
||||||
2K |
Mafia III: Stones Unturned (DLC) |
PS4, Xbox One, PC | May 30, 2017 | ||||||
2K |
Mafia III: Sign of the Times (DLC) |
PS4, Xbox One, PC | July 25, 2017 | ||||||
Take-Two's lineup of future titles announced to date includes: |
|||||||||
Label |
Title |
Platforms |
Release Date |
||||||
2K |
XCOM 2: War of the Chosen (DLC) |
PS4, Xbox One, PC | August 29, 2017 | ||||||
2K |
NBA 2K18 |
PS4, PS3, Xbox One, Xbox 360, Switch (digital), PC | September 19, 2017 | ||||||
2K |
WWE 2K18 |
PS4, Xbox One | October 17, 2017 | ||||||
2K |
NBA 2K18 |
Switch (physical) | Fall 2017 | ||||||
2K |
WWE 2K18 |
Switch | Fall 2017 | ||||||
Take-Two |
Kerbal Space Program: Making History Expansion |
PC | Calendar 2017 | ||||||
Rockstar Games |
Red Dead Redemption 2 |
PS4, Xbox One | Spring 2018 | ||||||
Conference Call
Take-Two will host a conference call today at
Final Results
The financial results discussed herein are presented on a preliminary
basis; final data will be included in Take-Two’s Quarterly Report on
Form 10-Q for the period ended
About
Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. The Company develops and publishes products principally through its two wholly-owned labels Rockstar Games and 2K. Our products are designed for console systems and personal computers, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their respective holders.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein which are not historical facts are
considered forward-looking statements under federal securities laws and
may be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "potential," "predicts,"
"projects," "seeks," “should,” "will," or words of similar meaning and
include, but are not limited to, statements regarding the outlook for
the Company's future business and financial performance. Such
forward-looking statements are based on the current beliefs of our
management as well as assumptions made by and information currently
available to them, which are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
outcomes and results may vary materially from these forward-looking
statements based on a variety of risks and uncertainties including: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability to
develop other hit titles, the timely release and significant market
acceptance of our games, the ability to maintain acceptable pricing
levels on our games, and risks associated with international operations.
Other important factors and information are contained in the Company's
most recent Annual Report on Form 10-K, including the risks summarized
in the section entitled "Risk Factors," the Company’s most recent
Quarterly Report on Form 10-Q, and the Company's other periodic filings
with the
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(in thousands, except per share amounts) | |||||||||
Three months ended June 30, | |||||||||
2017 | 2016 | ||||||||
Net revenue | $ | 418,216 | $ | 311,552 | |||||
Cost of goods sold: | |||||||||
Internal royalties | 77,704 | 59,673 | |||||||
Software development costs and royalties | 43,629 | 63,659 | |||||||
Product costs | 44,069 | 44,979 | |||||||
Licenses | 29,167 | 23,069 | |||||||
Total cost of goods sold | 194,569 | 191,380 | |||||||
Gross profit | 223,647 | 120,172 | |||||||
General and administrative | 60,603 | 46,743 | |||||||
Selling and marketing | 52,214 | 71,134 | |||||||
Research and development | 42,269 | 33,900 | |||||||
Business reorganization | 10,599 | - | |||||||
Depreciation and amortization | 7,743 | 7,378 | |||||||
Total operating expenses | 173,428 | 159,155 | |||||||
Income (loss) from operations | 50,219 | (38,983 | ) | ||||||
Interest and other, net | (2,808 | ) | (4,506 | ) | |||||
Gain on long-term investments, net | - | 1,350 | |||||||
Income (loss) before income taxes | 47,411 | (42,139 | ) | ||||||
Benefit from income taxes | 12,865 | 3,572 | |||||||
Net income (loss) | $ | 60,276 | $ | (38,567 | ) | ||||
Earnings (loss) per share: | |||||||||
Basic earnings (loss) per share | $ | 0.57 | $ | (0.46 | ) | ||||
Diluted earnings (loss) per share | $ | 0.56 | $ | (0.46 | ) | ||||
Weighted average shares outstanding: | |||||||||
Basic | 104,465 | 84,588 | |||||||
Diluted | 117,753 | 84,588 | |||||||
Computation of Basic EPS: | |||||||||
Net income (loss) | $ | 60,276 | $ | (38,567 | ) | ||||
Less: net income allocated to participating securities | (588 | ) | - | ||||||
Net loss for basic and diluted EPS calculation | $ | 59,688 | $ | (38,567 | ) | ||||
Weighted average shares outstanding - basic | 105,494 | 84,588 | |||||||
Less: weighted average participating shares outstanding | (1,029 | ) | - | ||||||
Weighted average common shares outstanding - basic | 104,465 | 84,588 | |||||||
Basic earnings (loss) per share | $ | 0.57 | $ | (0.46 | ) | ||||
Computation of Diluted EPS: | |||||||||
Net income (loss) | $ | 60,276 | $ | (38,567 | ) | ||||
Less: net income allocated to participating securities | (522 | ) | - | ||||||
Add: interest expense, net of tax, on Convertible Notes | 5,750 | - | |||||||
Net income (loss) for diluted EPS calculation | $ | 65,504 | $ | (38,567 | ) | ||||
Weighted average common shares outstanding - basic | 105,494 | 84,588 | |||||||
Add: dilutive effect of common stock equivalents | 13,288 | - | |||||||
Total weighted average shares outstanding - diluted | 118,782 | 84,588 | |||||||
Less: weighted average participating shares outstanding | (1,029 | ) | - | ||||||
Weighted average common shares outstanding - diluted | 117,753 | 84,588 | |||||||
Diluted earnings (loss) per share | $ | 0.56 | $ | (0.46 | ) | ||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except per share amounts) | ||||||||
June 30, | March 31, | |||||||
2017 | 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 828,112 | $ | 943,396 | ||||
Short-term investments | 452,949 | 448,932 | ||||||
Restricted cash | 406,336 | 337,818 | ||||||
Accounts receivable, net of allowances of $52,262 and $66,483 at June 30, 2017 and March 30, 2017, respectively |
229,197 | 219,558 | ||||||
Inventory | 11,636 | 16,323 | ||||||
Software development costs and licenses | 20,181 | 41,721 | ||||||
Deferred cost of goods sold | 79,902 | 127,901 | ||||||
Prepaid expenses and other | 84,823 | 59,593 | ||||||
Total current assets | 2,113,136 | 2,195,242 | ||||||
Fixed assets, net | 76,613 | 67,300 | ||||||
Software development costs and licenses, net of current portion | 462,877 | 381,910 | ||||||
Deferred cost of goods sold, net of current portion | 17,021 | - | ||||||
Goodwill | 369,622 | 359,115 | ||||||
Other intangibles, net | 133,330 | 110,262 | ||||||
Other assets | 46,971 | 35,325 | ||||||
Total assets | $ | 3,219,570 | $ | 3,149,154 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 36,934 | $ | 31,892 | ||||
Accrued expenses and other current liabilities | 809,685 | 750,875 | ||||||
Deferred revenue | 619,439 | 903,125 | ||||||
Total current liabilities | 1,466,058 | 1,685,892 | ||||||
Long-term debt | 212,864 | 251,929 | ||||||
Non-current deferred revenue | 231,526 | 10,406 | ||||||
Other long-term liabilities | 209,367 | 197,199 | ||||||
Total liabilities | 2,119,815 | 2,145,426 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $.01 par value, 5,000 shares authorized | - | - | ||||||
Common stock, $.01 par value, 200,000 shares authorized; 123,027 and 119,813 shares | ||||||||
issued and 105,835 and 102,621 outstanding at June 30, 2017 and March 31, 2017, respectively | 1,230 | 1,198 | ||||||
Additional paid-in capital | 1,479,143 | 1,452,754 | ||||||
Treasury stock, at cost; 17,192 common shares at June 30, 2017 and March 31, 2017, respectively | (303,388 | ) | (303,388 | ) | ||||
Accumulated deficit | (39,648 | ) | (99,694 | ) | ||||
Accumulated other comprehensive loss | (37,582 | ) | (47,142 | ) | ||||
Total stockholders' equity | 1,099,755 | 1,003,728 | ||||||
Total liabilities and stockholders' equity | $ | 3,219,570 | $ | 3,149,154 | ||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(in thousands) | ||||||||||
Three months ended June 30, | ||||||||||
2017 | 2016 | |||||||||
Operating activities: | ||||||||||
Net income (loss) | $ | 60,276 | $ | (38,567 | ) | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
Amortization and impairment of software development costs and licenses | 18,206 | 41,034 | ||||||||
Depreciation and amortization | 7,743 | 7,378 | ||||||||
Amortization and impairment of intellectual property | 8,181 | - | ||||||||
Stock-based compensation | 24,071 | 15,100 | ||||||||
Amortization of discount on Convertible Notes | 5,237 | 6,098 | ||||||||
Gain on conversions of Convertible Notes | (1,103 | ) | - | |||||||
Amortization of debt issuance costs | 188 | 381 | ||||||||
Other, net | (9,669 | ) | (3,171 | ) | ||||||
Changes in assets and liabilities: | ||||||||||
Restricted cash | (68,518 | ) | (57,335 | ) | ||||||
Accounts receivable | (9,294 | ) | 28,226 | |||||||
Inventory | 5,451 | 2,696 | ||||||||
Software development costs and licenses | (71,829 | ) | (62,392 | ) | ||||||
Prepaid expenses and other assets | (23,199 | ) | (3,867 | ) | ||||||
Deferred revenue | (67,883 | ) | (36,446 | ) | ||||||
Deferred cost of goods sold | 32,233 | 17,223 | ||||||||
Accounts payable, accrued expenses and other liabilities | 71,281 | 36,394 | ||||||||
Net cash used in operating activities | (18,628 | ) | (47,248 | ) | ||||||
Investing activities: | ||||||||||
Change in bank time deposits | (24,999 | ) | 78,691 | |||||||
Proceeds from available-for-sale securities | 45,705 | 29,795 | ||||||||
Purchases of available-for-sale securities | (33,158 | ) | (30,836 | ) | ||||||
Purchases of fixed assets | (16,092 | ) | (4,230 | ) | ||||||
Purchases of commercial paper | (7,989 | ) | - | |||||||
Proceeds from commercial paper | 16,500 | - | ||||||||
Proceeds from sale of long-term investments | - | 1,350 | ||||||||
Purchase of long-term investments | - | (1,885 | ) | |||||||
Asset acquisition | (25,381 | ) | - | |||||||
Net cash (used in) provided by investing activities | (45,415 | ) | 72,885 | |||||||
Financing activities: | ||||||||||
Excess tax benefit from stock-based compensation | - | 887 | ||||||||
Tax payment related to net share settlements on restricted stock awards | (57,689 | ) | (25,166 | ) | ||||||
Net cash used in financing activities | (57,689 | ) | (24,279 | ) | ||||||
Effects of foreign exchange rates on cash and cash equivalents | 6,448 | (3,772 | ) | |||||||
Net decrease in cash and cash equivalents | (115,284 | ) | (2,414 | ) | ||||||
Cash and cash equivalents, beginning of year | 943,396 | 798,742 | ||||||||
Cash and cash equivalents, end of period | $ | 828,112 | $ | 796,328 | ||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
Net Revenue and Net Sales by Geographic Region, Distribution Channel, and Platform Mix | ||||||||||||||
(in thousands) | ||||||||||||||
Three Months Ended June 30, 2017 |
Three Months Ended June 30, 2016 |
|||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Net revenue by geographic region | ||||||||||||||
United States | $ | 258,260 | 62 | % | $ | 193,101 | 62 | % | ||||||
International | 159,956 | 38 | % | 118,451 | 38 | % | ||||||||
Total net revenue | 418,216 | 100 | % | 311,552 | 100 | % | ||||||||
Net sales by geographic region | ||||||||||||||
United States | $ | 199,871 | 57 | % | $ | 143,240 | 53 | % | ||||||
International | 148,434 | 43 | % | 129,316 | 47 | % | ||||||||
Total net sales | $ | 348,305 | 100 | % | $ | 272,556 | 100 | % | ||||||
Three Months Ended
June 30, 2017 |
Three Months Ended
June 30, 2016 |
|||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Net revenue by distribution channel | ||||||||||||||
Digital online | $ | 268,235 | 64 | % | $ | 172,078 | 55 | % | ||||||
Physical retail and other | 149,981 | 36 | % | 139,474 | 45 | % | ||||||||
Total net revenue | 418,216 | 100 | % | 311,552 | 100 | % | ||||||||
Net sales by distribution channel | ||||||||||||||
Digital online | $ | 280,914 | 81 | % | $ | 191,164 | 70 | % | ||||||
Physical retail and other | 67,391 | 19 | % | 81,392 | 30 | % | ||||||||
Total net sales | $ | 348,305 | 100 | % | $ | 272,556 | 100 | % | ||||||
Three Months Ended
June 30, 2017 |
Three Months Ended
June 30, 2016 |
|||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Net revenue by platform mix | ||||||||||||||
Console | $ | 344,917 | 82 | % | $ | 254,026 | 82 | % | ||||||
PC and other | 73,299 | 18 | % | 57,526 | 18 | % | ||||||||
Total net revenue | 418,216 | 100 | % | 311,552 | 100 | % | ||||||||
Net sales by platform mix | ||||||||||||||
Console | $ | 265,750 | 76 | % | $ | 213,845 | 78 | % | ||||||
PC and other | 82,555 | 24 | % | 58,711 | 22 | % | ||||||||
Total net sales | $ | 348,305 | 100 | % | $ | 272,556 | 100 | % | ||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Three Months Ended June 30, 2017 | Net Revenue |
Cost of Goods Sold- Internal Royalties |
Cost of Goods Sold- Software Development Costs and Royalties |
Cost of Goods Sold- Product Costs |
Cost of Goods Sold- Licenses |
General and Administrative |
|||||||||||||||||||||
As reported | $ | 418,216 | $ | 77,704 | $ | 43,629 | $ | 44,069 | $ | 29,167 | $ | 60,603 | |||||||||||||||
Net effect from deferral and related cost of goods sold | (69,911 | ) | (7,654 | ) | (17,806 | ) | (14,831 | ) | |||||||||||||||||||
Stock-based compensation | (3,481 | ) | (13,120 | ) | |||||||||||||||||||||||
Amortization of intangibles | (4,242 | ) | |||||||||||||||||||||||||
Acquisition related expenses | (18 | ) | |||||||||||||||||||||||||
Three Months Ended June 30, 2017 |
Selling and Marketing |
Research and Development |
Business Reorganization |
Depreciation and Amortization |
Interest and Other, net |
||||||||||||||||||||||
As reported | $ | 52,214 | $ | 42,269 | $ | 10,599 | $ | 7,743 | $ | (2,808 | ) | ||||||||||||||||
Stock-based compensation | (2,585 | ) | (2,464 | ) | (2,421 | ) | |||||||||||||||||||||
Non-cash amortization of discount on Convertible Notes | 5,237 | ||||||||||||||||||||||||||
Non-cash (gain) loss on redemption of Convertible Notes | (1,103 | ) | |||||||||||||||||||||||||
Amortization of intangibles | (2,308 | ) | (1,523 | ) | (120 | ) | |||||||||||||||||||||
Impact of business reorganization | (8,178 | ) | |||||||||||||||||||||||||
Three Months Ended June 30, 2016 | Net Revenue |
Cost of Goods Sold- Internal Royalties |
Cost of Goods Sold- Software Development Costs and Royalties |
Cost of Goods Sold- Product Costs |
Cost of Goods Sold- Licenses |
General and Administrative |
|||||||||||||||||||||
As reported | $ | 311,552 | $ | 59,673 | $ | 63,659 | $ | 44,979 | $ | 23,069 | $ | 46,743 | |||||||||||||||
Net effect from deferral and related cost of goods sold | (38,996 | ) | (2,727 | ) | (8,889 | ) | (13,007 | ) | (6,705 | ) | |||||||||||||||||
Stock-based compensation | (4,386 | ) | |||||||||||||||||||||||||
Three Months Ended June 30, 2016 |
Selling and Marketing |
Research and Development |
Depreciation and Amortization |
Interest and Other, net |
Gain on long-term investments |
||||||||||||||||||||||
As reported | $ | 71,134 | $ | 33,900 | $ | 7,378 | $ | (4,506 | ) | $ | 1,350 | ||||||||||||||||
Stock-based compensation | (2,549 | ) | (1,459 | ) | |||||||||||||||||||||||
Non-cash amortization of discount on Convertible Notes | 6,099 | ||||||||||||||||||||||||||
Impact of business reorganization | |||||||||||||||||||||||||||
Proceeds from sale of long-term investments | (1,350 | ) |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802006214/en/
Source: Take-Two Interactive
Take-Two Interactive Software, Inc. Investor Relations: Henry A. Diamond, 646-536-3005 Senior Vice President Investor Relations & Corporate Communications Henry.Diamond@take2games.com or Corporate Press: Alan Lewis, 646-536-2983 Vice President Corporate Communications & Public Affairs Alan.Lewis@take2games.com